Following the failure of cryptocurrency exchange FTX on Friday, Binance CEO Changpeng Zhao (CZ) spoke about cryptocurrency regulation at a Binance event in Athens, Greece.
I think most governments now understand that adoption will happen regardless. It’s better to regulate the industry instead of trying to fight against it.
On November 11, FTX, a significant cryptocurrency trading platform, went under and declared bankruptcy. Millions of debtors are expected to suffer damages amounting to billions of dollars.
Zhao compared the FTX collapse to the financial crisis of 2008. He also cautioned against domino effects. But he added that he believes the cryptocurrency sector will bounce back.
Binance has pledged two billion dollars to a crypto industry recovery fund in an effort to regain consumer trust in the sector. The conversation gave specifics about the program this week.
Zhao said he anticipates countries without their own currency will lead the trend in response to a query on how he sees nations adding cryptocurrencies, such as bitcoin, to their reserves in the future. He said, “I think the smaller countries would start first.”
El Salvador was the first nation to recognize bitcoin as legal cash in addition to the dollar in September of last year. The nation has since purchased hundreds of BTC for its Treasury. El Salvador is now purchasing one bitcoin per day, according to a statement made last week by president Nayib Bukele.
